Workers’ compensation is a very vital part of your business and career. It’s a type of insurance program that gives benefits to workers who got injured to became ill on the job. The insurance’s job is to cover medical costs and pay lost wages while the worker is sick or injured.
This is very important for both workers and employers. As I’ve already mentioned, workers will be compensated while they are out of work. They will also get their wages even after missing days at work and won’t have to pay the medical bills.
As for the employees, the insurance can protect them from litigation if and when their workers injured themselves at work. Workers’ compensation insurance may cover illness, loss of limbs, motion injuries, permanent impairment, rehabilitation, lost wages, and even death.
It doesn’t end here, there are still several more things that you should know about workers’ compensation.
Sick or injured workers are still the employer’s responsibilities
The insurance may cover a lot of things to make sure the workers are adequately compensated. But that doesn’t mean the employer shouldn’t do anything more. The employers should always stay in contact with the injured or sick workers, especially during the recovery phase.
This is to determine when they can return to work and that no fraud is happening. If done right, not only the employer can get rid of the possibility of fraud, they can also reduce the number of days lost due to illnesses or injuries. Productivity will increase because injured or sick workers can recover more quickly.
Both small and large businesses can and should apply for the insurance
While the laws vary by state, you should always assume that both small and large businesses should be able to meet the threshold for workers’ compensation. A small business usually needs to have at least five employees before they can apply for the insurance. But a small business in the construction industry with only one employee can already apply to have workers’ compensation insurance.
Furthermore, experts have stated that all businesses should have workers’ compensation no matter what the rules are. Since the insurance benefits both the workers and employers. Check with the business that you work or planning to work for.
Frauds are actually uncommon
There are many paranoid employers out there, who claim that frauds are common and hurting their businesses. Regardless of that, studies have proved otherwise, with only 1 to 2% of workers’ compensation claims are fraudulent.
Of course, employers have the right to be cautious. Considering that fraudulent claims of all insurance types have siphoned around $80 billion per year. Small and large businesses should always be vigilant to prevent insurance frauds and stay productive. But being paranoid and assuming that every claim is fraudulent is ridiculous.
Workers can be compensated for their own mistakes
So, I have already talked about fraudulent claims and workers can’t just injure themselves to get the benefits. But workers can still get the benefits from the insurance despite their own careless mistakes, as long as the accident happens while they are working.
Keep in mind that if the injuries happened with the help of drugs or alcohol, those workers will not get the benefits of workers’ compensation.
Employers and workers must follow the application process
To get the benefits of by workers’ compensation, both employers and workers must work together to comply with the rules. First of all, employers must report injuries or accidents as soon as possible. Never delay it for a minute longer, or you may lose the chance to receive the benefits. Especially if you don’t let anyone know that the accident happened. It’s also a great idea to talk to an attorney regarding the accident.
The second is filing a claim. The benefits are there, and you must file a claim to get them. You have six months after the injury or accident at work to file the claim. Third, you need to get the appropriate medical help. Your doctor will determine how long you’re going to be out of work and other limitations that you may have after you recovered.
Take care of yourself and always be cautious
Workers’ compensation is there to help both employers and workers. While it might seem confusing at first, the system does a good job of minimizing risks that come from the job. Always stay up to date on the newest development in the industry and the whole system.